An update on the uranium industry: The current paradox and its resolution Michael Angwin

Level 1, 499 St Kilda Road, Melbourne Vic 3004 ABN. 30 005 503 828T: +61 3 8616 0440 F: +61 3 8616 0441 W: www.aua.org.au

An update on the uranium industry:The current paradox and its resolution

Michael AngwinChief Executive Officer

Darwin Mining Club12 June 2013

The current paradox

Supportive politics coexists with negative economics

The negative economics

Resource industry challenges• Relatively fast increases in Australian capital costs • Commodity rivals with competitive cost structures• Delays in approvals add costs

Uranium industry challenges• Uncertainty following Fukushima • Low spot prices• Access to capital

Supportive politics

Long term political support in NT and SA

National bipartisanship since 2007

Newly supportive State policies• WA, Queensland, NSW

Exports to India

Australia’s uranium policy In the national interest

Expansion of production

Exports to selected countries

A platform for building regional relationships

How will this paradox be resolved?(1) Short term

Demand will exceed supply later this decade

Uranium spot price: US$70/pound by 2018

How will this paradox be resolved(2) Long term

By growth in the nuclear power industry of by 25% to 100% by 2030s

Nuclear outlook: IEA

2010 2035

394 GW(e) 583 GW(e)

Nuclear outlook: IAEA

2012 2030

Low estimate 368.8 GW(e) (actual)

456 Gw(e)

High estimate 740 Gw(e)

Nuclear power in 2035

Realising opportunity, raising competitiveness

Align domestic production and export policiesTreat uranium on merit

Fukushima: UNSCEAR findings

UNSCEAR finds no health risks attributable to Fukushima accident

Level 1, 499 St Kilda Road, Melbourne Vic 3004 ABN. 30 005 503 828T: +61 3 8616 0440 F: +61 3 8616 0441 W: www.aua.org.au

An update on the uranium industry: The current paradox and its resolution

Michael AngwinChief Executive Officer

Darwin Mining Club12 June 2013